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MMLU-Pro / 7670 / Suppose a bank has 250,000indepositsandreservesof 62,500. If the…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Suppose a bank has 250,000indepositsandreservesof 250,000 in deposits and reserves of 62,500. If the required reserve ratio, r, is 25%, what happens to the potential money supply if a depositor with- draws and keeps $ 10,000 in currency, assuming all other banks in the system are "loaned up"?
Plain-text mathematical notation (without MathML)
Suppose a bank has 250,000indepositsandreservesof 62,500. If the required reserve ratio, r, is 25%, what happens to the potential money supply if a depositor with- draws and keeps $ 10,000 in currency, assuming all other banks in the system are "loaned up"?
Original LaTeX notation
Suppose a bank has $ 250,000 in deposits and reserves of $ 62,500. If the required reserve ratio, r, is 25%, what happens to the potential money supply if a depositor with- draws and keeps $ 10,000 in currency, assuming all other banks in the system are "loaned up"?

category

economics

options

  1. a reduction of the money supply by $10,000
  2. an increase of the money supply by $40,000
  3. an increase of the money supply by $10,000
  4. no change in the money supply, but a decrease in reserve ratio
  5. no change in the money supply
  6. an increase of the money supply by $30,000
  7. a reduction of the money supply by $50,000
  8. a reduction of the money supply by $30,000
  9. a reduction of the money supply by $40,000
  10. an increase of the money supply by $50,000

src

stemez-Economics

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Source and history

upstream_id / Original problem ID
7670
task_id
50538863-7a34-51f5-ab89-27e2af0580f3
task_key
default--test--7670
task_revision_id
1
config / split
default / test

Official source

initial import